Earnings Per Share Attributable to Federated Investors, Inc. Shareholders

9 Months Ended

Sep. 30, 2011

Earnings Per Share Attributable to Federated Investors, Inc. Shareholders

(13) Earnings Per Share Attributable to Federated Investors, Inc. Shareholders

The following table sets forth the computation of basic and diluted earnings per share for amounts attributable to Federated Investors, Inc. using the two-class method:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands, except per share data)	2011			2010			2011			2010
Numerator – Basic and Diluted
Net income attributable to Federated Investors, Inc.	$	38,320		$	43,056		$	113,964		$	132,713
Less: Total income available to participating unvested restricted shareholders¹	(1,211		)	(1,251		)	(3,746		)	(5,766		)
Total net income attributable to Federated Common Stock²	$	37,109		$	41,805		$	110,218		$	126,947
Denominator
Basic weighted-average common shares outstanding	100,684			99,916			100,725			99,907
Dilutive potential shares from stock options	0			38			31			84
Diluted weighted-average common shares outstanding	100,684			99,954			100,756			99,991
Earnings per Share
Net income attributable to Federated Common Stock – Basic and Diluted²	$	0.37		$	0.42		$	1.09		$	1.27


¹	Income available to participating restricted shareholders includes dividends paid to unvested restricted shareholders, net of forfeited dividends, and their proportionate share of undistributed earnings, if any.


²	Federated Common Stock excludes unvested restricted stock which are deemed participating securities in accordance with the two-class method of computing earnings per share.

For the three- and nine-month periods ended September 30, 2011, 0.4 million and 0.9 million stock option awards, respectively, were outstanding but not included in the computation of diluted earnings per share for each period because the exercise price was greater than the average market price of Federated Class B common stock for each respective period. In the event the awards become dilutive, these shares would be included in the calculation of diluted earnings per share and would result in additional dilution. For the three- and nine-month periods ended September 30, 2010, 3.4 million and 2.9 million stock option awards, respectively, were outstanding but not included in the computation of diluted earnings per share for each period because the exercise price was greater than the average market price of Federated Class B common stock for each respective period.